---
title: "IS areas using AI / data analytics"
subject: "Information System"
chapter: 4
key: "semester_8/information_system:ai-areas-data-analytics"
source: https://www.bctengineer.com/q/semester_8/information_system/ai-areas-data-analytics
site: BCT Engineering
---

# IS areas using AI / data analytics

Information System · Chapter 4: Decision support and Intelligent systems

- Asked in: 2072 Asoj, 5 marks; 2071 Bhadra, 4 marks (asked 2 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/information_system/ai-areas-data-analytics
- Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-4

## Question

Discuss four different areas of information systems that use data analytics and related techniques (artificial intelligence and related techniques).

## Short answer

Four areas: CRM uses analytics for churn prediction and recommendations; finance uses ML for fraud detection and credit scoring; supply chain uses forecasting, maintenance and route optimization; DSS and business intelligence use predictive models and dashboards for strategy.

## Answer

Information systems increasingly use data analytics and artificial intelligence (machine learning, expert systems, NLP, neural networks). Four major areas:

#### 1. Customer relationship management and marketing
- Analytics segments customers, predicts churn and lifetime value.
- Recommendation engines (Amazon, Netflix) and chatbots personalise offers and answer queries.
- Sentiment analysis of social media gives feedback.

#### 2. Finance, banking and fraud detection
- Machine learning detects unusual credit-card and transaction patterns in real time.
- Credit scoring and loan approval models; algorithmic trading and risk assessment.
- Anti-money-laundering analytics.

#### 3. Supply chain and operations
- Demand forecasting, inventory optimisation and route planning.
- Predictive maintenance of machines using sensor data (IoT).
- Quality inspection with computer vision.

#### 4. Decision support and business intelligence
- DSS, executive dashboards and OLAP use data mining and predictive models for strategy.
- Expert systems give rule-based advice (loan officer, medical diagnosis).
- Natural language query and automated reporting.

Other areas: healthcare (diagnosis, drug discovery), human resources (resume screening, attrition prediction), education (adaptive learning), and cyber security (anomaly and intrusion detection).

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which is an AI/analytics use in CRM and marketing?
   A. Predictive maintenance of machines
   B. Recommendation engines and churn prediction
   C. Anti-money-laundering analytics
   D. Route planning
   Answer: B. CRM uses segmentation, churn prediction, recommendations and chatbots. (Key point: CRM analytics)

2. How is machine learning used in banking?
   A. Printing cheques
   B. Cooling data centres
   C. Detecting unusual credit-card transaction patterns in real time
   D. Managing fuel
   Answer: C. Fraud detection is a key finance application. (Key point: Finance)

3. Which example belongs to supply chain and operations?
   A. Sentiment analysis of social media
   B. Credit scoring
   C. Expert system for loan advice
   D. Predictive maintenance using sensor (IoT) data
   Answer: D. Operations use forecasting, route planning, predictive maintenance and vision inspection. (Key point: Supply chain)

4. Which belongs to decision support and BI?
   A. Expert systems giving rule-based advice and executive dashboards
   B. Algorithmic trading
   C. Demand forecasting
   D. Chatbots for customers
   Answer: A. DSS, dashboards, OLAP and expert systems support decisions. (Key point: Decision support)

## Related in Information System

- [Collective intelligence and KMS](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acollective-intelligence-km) — Information System, chapter 4
- [Collective intelligence pros and cons](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acollective-intelligence-pros-cons) — Information System, chapter 4
- [Meaning of collective intelligence](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acollective-intelligence-meaning) — Information System, chapter 4
- [Data mining and business knowledge](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Adata-mining-business-knowledge) — Information System, chapter 4
- [Data warehouse and data mining](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Adata-warehouse-data-mining) — Information System, chapter 4, asked 2×
- [Handling voluminous data](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Avoluminous-data-techniques-challenges) — Information System, chapter 8

## Related in other subjects

- [Data analytics process and distributed computing](https://www.bctengineer.com/question.md?key=semester_8%2Fbig_data_technologies%3Adata-analytics-distributed-role) — Big Data Technologies, chapter 1
- [Information support for functional areas](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Ainformation-support-functional-areas) — Organization and Management, chapter 9, asked 5×
- [ANOVA: distance to fire stations in four areas](https://www.bctengineer.com/question.md?key=semester_5%2Fprobability_and_statistics%3Aanova-fire-station-distance) — Probability and Statistics, chapter 6
- [Types of information systems; decision support](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types-decision-making) — Organization and Management, chapter 9